WASHINGTON—Claiming a victory for credit unions, NAFCU and CUNA applauded the inclusion of several provisions benefitting CUs in the highway bill reported out today by House and Senate conferees.
The bill included privacy notice and certain qualified-mortgage relief for credit unions, as well as a provision to allow privately insured credit unions to become members of the Federal Home Loan Bank—all supported by both trade associations. The action helps pave the way for final passage in the House and Senate as a Friday deadline for enactment nears.
“NAFCU and our members appreciate House Financial Services Committee Chairman Jeb Hensarling’s (R-TX) commitment and leadership efforts to advance regulatory relief for credit unions,” said NAFCU President and CEO Dan Berger. “We thank the conferees for including these important provisions and look forward to continuing our work with Congress to champion regulatory relief for credit unions.”
“This is a huge victory for credit unions and the over 100 million credit union members CUNA represents,” said CUNA president and CEO Jim Nussle. “CUNA has long supported modernizing privacy notification requirements, allowing privately insured credit unions to become members of the Federal Home Loan Bank system and directing the CFPB to establish a process for determining whether an area should be designated as rural which could impact the products credit unions offer. CUNA worked closely with lawmakers and staff on these provisions and we look forward to seeing the highway bill come to a vote in the House and Senate this week.”
An amendment in the House-passed version of the multi-year transportation bill, H.R. 22, by Hensarling, included the text of H.R. 601, the “Elimination Privacy Notice Confusion Act.”
H.R. 601 would clarify that consumers will receive privacy notices after opening a new account and when their providers’ privacy policies change. This would be a change from the current requirement for annual notices and addresses a part of NAFCU’s five-point plan for regulatory relief.
After passing both the House and Senate, the transportation bill headed to a House-Senate conference last month where lawmakers resolved differences in the bills. H.R. 601 already passed the House in April by a voice vote.
Also included in the highway bill package is H.R. 1259, the “Helping Expand Lending Practices in Rural Communities Act.”
“This NAFCU-backed bipartisan legislation introduced by Reps. Andy Barr (R-KY) and Ruben Hinojosa (D-TX), would be helpful to credit unions as they deal with the Consumer Financial Protection Bureau’s definition ‘rural area,’ particularly as it relates to the ability-to-repay rule,” NAFCU stated.
After the bill clears the House and Senate, it heads to the president, who is expected to sign the measure.